The Central Bank of Jordan keeps interest rates on Monetary Policy instruments unchanged
The Open Market Operations Committee at the Central Bank of Jordan held its second meeting for the year of 2025, during which it decided to keep interest rates on all monetary policy instruments at their current levels without change.
The Committee extensively discussed domestic economic, monetary and financial developments, and reviewed updates on the regional and international economic environment. Available economic indicators underline the strength of monetary stability and robustness of the Jordanian banking sector, with support of a comfortable level of foreign reserves at the Central Bank, which have exceeded USD 21 Billion by the end of February 2025. The data further shows that the inflation rate remained low at 2.2% during the first two months of the current year, whereas it is predicted that it stabilizes on the same level for the whole year of 2025, contributing to upholding purchase power and solidifying the competiveness of the national economy.
As for the banking sector, data show growth reflecting the robustness and reliability of this sector, whereas clients’ deposits at banks rose on an annual basis of 6.8% reaching about JD 47 billion by the end of January 2025. Credit facilities granted by banks rose by a rate of 4.8%, reaching JD 35.1 billion, asserting the dynamic role of the banking sector in providing necessary funding for economic activities, in particular investments which contribute to supporting sustainable economic growth.
In relation to the performance of the external sector, indicators continued their positive improvement, whereas the tourism income rose by a rate of 16.3% during the first two months of the year 2025 reaching about USD 1.3 billion in comparison with the same period of last year, which reflects the start of recovery for this vital sector. The oversees workers’ remittances recorded an increase of 1.2% in January 2025 reaching about USD 320 million. In the same context, total exports rose by 5.8% during the year 2024 reaching USD 13.3 billion. Preliminary estimates indicate that the size of direct foreign investment flowing to the Kingdom has reached about USD 1.6 billion in 2024, reflecting the trust of investors and attractiveness of the investment environment in the Kingdom.
On the economic activity level, the Gross Domestic Product recorded growth by 2.4% during the first three quarters of 2024. Estimates indicate it will stabilize at this rate for the whole year, with a predicted relative acceleration, which will reach about 2.7% during 2025, driven by improving domestic and external demand, particularly on the investment side, while the positive performance of various economic sectors persists.
The Central Bank of Jordan reaffirms its commitment to continuously monitoring economic, monetary, and financial developments at both local and international levels. It also remains dedicated to taking all necessary measures to maintain monetary and financial stability and contain inflationary pressures within acceptable levels.